ENSafrica tax in brief – Issue 68
Below, please find issue 68 of ENSafrica's tax in brief, a snapshot of the latest tax developments in South Africa.
Legislation And Draft Legislation
- On 28 July 2021, National Treasury and the South African Revenue Service ("SARS") published the 2021 draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill ("2021 draft Rates Bill"), the 2021 draft Taxation Laws Amendment Bill ("2021 draft TLAB") and the 2021 draft Tax Administration Laws Amendment Bill ("2021 draft TALAB")
- The draft Bills contain tax proposals made in the 2021 Budget on 24 February 2021.
- Key tax proposals contained in the 2021 draft Rates Bill include:
- Changes in rates and monetary thresholds to the personal income tax tables
- Increases of the excise duties on alcohol and tobacco
- Key tax proposals contained in the 2021 draft TLAB include:
- Strengthening the rules dealing with limitation of interest deductions in respect of debt owed to persons not subject to tax
- Restricting the set-off of the balance of assessed losses in determining taxable income
- Refining the timeframes of compliance requirements of the industrial policy projects tax incentive
- Curbing the abuse of the Employment Tax Incentive
- Applying tax on retirement fund interest when an individual ceases to be a tax resident
- Strengthening anti-avoidance rules in respect of loans between trusts
- Refinements to the corporate reorganisation rules
- Clarifying the scope and definition of carbon sequestration
- Key tax proposals contained in the 2021 draft TALAB include:
- Administrative non-compliance penalties based on estimates for non-submission of six-monthly employees' tax returns
- Removal of double-penalty for the same incidence of non-compliance relating to employees' tax
- Expanding the purposes for which air cargo may be removed to de-grouping depots
- Amendments related to changes in the accreditation system
- Increasing the caps for refunds and underpayments of duties
- Find the Bills and related explanatory memoranda here.
- See the National Treasury media statement for a summary of the key tax proposals covered in the Bills.
- The deadline for public comments to National Treasury is 28 August 2021
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